401(k) hardship withdrawals, loans increase in second quarter

The number of 401(k) participants taking hardship withdrawals increased for the second straight quarter, according to Bank of America's quarterly Participant Pulse, which examines data from its record-keeping clients. There were 15,950 distributions in the period vs. 14,225 in the first quarter.

Last quarter's average distribution was $5,050.

The percentage of plan participants taking 401(k) loans was 2.5%, or 75,000, in the second quarter. That compares with 1.9% (56,000) in the first quarter.